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  2. What is a tax-equivalent yield on municipal bonds? - AOL

    www.aol.com/finance/tax-equivalent-yield...

    For example, imagine you pay federal tax at a 24 percent rate and state tax at a rate of 6 percent, and the municipal bond offers a yield of 3 percent.

  3. Best municipal bond funds - AOL

    www.aol.com/finance/best-municipal-bond-funds...

    The T. Rowe Price Tax-Free High Yield Fund seeks a high level of income that is exempt from federal income tax by investing in long-term municipal securities with a low to upper-medium investment ...

  4. How Tax-Free Municipal Bonds Could Fit Into Your Portfolio

    www.aol.com/finance/tax-free-municipal-bonds-may...

    Tax-free municipal bonds are not just a source of investment but also a significant contributor to public projects such as roads, schools and hospitals. These debt instruments are issued by local ...

  5. Municipal bond - Wikipedia

    en.wikipedia.org/wiki/Municipal_bond

    For example, assume an investor in the 38% tax bracket is offered a municipal bond that has a tax-exempt yield of 1.0%. Using the formula above, the municipal bond's taxable equivalent yield is 1.6% (0.01/(1-0.38) = 0.016) - a figure which can be fairly compared to yields on taxable investments such as corporate or U.S. Treasury bonds for ...

  6. Municipal bond arbitrage - Wikipedia

    en.wikipedia.org/wiki/Municipal_Bond_Arbitrage

    The arbitrage manifests itself in the form of a relatively cheap longer maturity municipal bond, which is a municipal bond that yields significantly more than 65% of a corresponding taxable corporate bond. The steeper slope of the municipal yield curve allows participants to collect more after-tax income from the municipal bond portfolio than ...

  7. 7 Best Tax-Free Municipal Bond Funds - AOL

    www.aol.com/news/7-best-tax-free-municipal...

    These muni bond funds offer tax-exempt income.Municipal bonds, sometimes referred to as munis, are issued by various government entities such as states, counties and municipalities. 7 Best Tax ...

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